Deposit rate cut back in ECB's toolbox

Oct 23, 2015 05:38 am UTC| Commentary Central Banks

To boost the ECBs toolbox, the ECB also reinserted the deposit rate as a possible instrument to be used. While last years assessment suggested that the effective lower bound for rates had been reached, the view now, due to...

Fed's rate hike uncertainty persists amid soft economic data

Oct 23, 2015 05:32 am UTC| Commentary Central Banks

At the conclusion of the September FOMC meeting of Fed, the Committee expressed great concern that risks surrounding the growth and inflation outlook of the United States- then still viewed a nearly balanced - could become...

Euro declined substantially today on the surprisingly soft stance by the ECB

Oct 22, 2015 22:42 pm UTC| Commentary Central Banks

The euro declined substantially today on the surprisingly soft stance by the ECB. Given that a 10bp deposit rate cut is expected in December. The experience from H1, when EUR/USD bottomed out just a few months after the...

FOMC Preview: Building a game plan for December

Oct 22, 2015 22:27 pm UTC| Commentary Central Banks

It is extremely unlikely that the FOMC will contemplate a rate hike at the upcoming gathering. More critically, officials will have to decide whether they still consider a December rate hike as likely and, if so, come up...

Dovish ECB to keep Danish central bank on hold

Oct 22, 2015 21:56 pm UTC| Commentary Central Banks

The European Central Bank (ECB) today signalled a clear willingness to ease monetary policy at its next meeting in December. Therefore, now it is expected to cut its deposit rate by 10bp to minus 0.30% and keep the door...

Fed’s hands are tied by softer data and dovish market expectations

Oct 22, 2015 21:29 pm UTC| Commentary Central Banks

Which scenario is more likely? Sending a strong message in favour of a December liftoff could unwind the recent easing in financial conditions and the Fed is expected to take that risk. On the other hand, the FOMC may want...

Currency War Series

ECB's challenges into December: two BoJ meetings, one US employment report

Oct 22, 2015 21:16 pm UTC| Commentary Central Banks

A combination of an increase in asset purchases and a deposit rate cut is seen as the most likely outcome of the December meeting. And from that perspective, expectations management is likely to be one of the key...